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Shri Manjunath R vs The Hindustan Petroleum Corporation
2025 Latest Caselaw 250 Kant

Citation : 2025 Latest Caselaw 250 Kant
Judgement Date : 2 June, 2025

Karnataka High Court

Shri Manjunath R vs The Hindustan Petroleum Corporation on 2 June, 2025

Author: M.Nagaprasanna
Bench: M.Nagaprasanna
                           1



Reserved on   : 26.04.2025
Pronounced on : 02.06.2025


       IN THE HIGH COURT OF KARNATAKA AT BENGALURU

           DATED THIS THE 02ND DAY OF JUNE, 2025

                          BEFORE

         THE HON'BLE MR. JUSTICE M. NAGAPRASANNA

          WRIT PETITION No.3868 OF 2025 (GM - RES)

BETWEEN:

SHRI MANJUNATHA R.,
S/O. RAJAPPA
AGED ABOUT 41 YEARS
RESIDENT OF NAGAPURA VILLAGE,
LAKKUR HOBLI, MALUR TALUK,
KOLAR DISTRICT - 563 139.

ALSO
RESIDING AT. NO.61, M.G. LAYOUT
MULLUR
SARJAPUR ROAD
BENGALURU - 560 035.
                                              ... PETITIONER

(BY SRI D.R.RAVISHANKAR, SR.ADVOCATE FOR
    SRI RAVISHANKAR K., ADVOCATE)

AND:

1.   THE HINDUSTAN PETROLEUM CORPORATION
     (GOVERNMENT OF INDIA UNDERTAKING)
     REGISTERED OFFICE AT NO.17
                             2




     JEMSHEDJI TATA ROAD,
     MUMBAI - 400 020.
     REPRESENTED BY ITS
     MANAGING DIRECTOR.

2.   THE DEPUTY GENERAL MANAGER,
     1ST FLOOR, BSNL CACT,
     HINDUSTAN PETROLEUM CORPORATION LTD.,
     OLD MADRAS ROAD,
     DOORVANI NAGAR POST,
     K.R PURAM,
     BENGALURU - 560 016.

3.   THE DEPUTY COMMISSIONER,
     KOLAR DISTRICT
     KOLAR - 563 101.

4.   THE TAHSILDAR
     MALUR TALUK
     KOLAR DISTRICT - 563 130.

5.   THE DISTRICT REGISTRAR (DRO)
     KOLAR DISTRICT.
     KOLAR - 563 101.

6.   THE SUB-REGISTRAR,
     MALUR TALUK
     MALUR - 563 130.

7.   MR. NELSON MANDELA M.,
     S/O C. MUNIRAJU
     AGED ABOUT 27 YEARS
     RESIDING AT MUTHKU VILLAGE
     ANUGONDANAHALLI HOBLI,
     HOSKOTE TALUK
                                       3



     BENGALURU RURAL DISTRICT - 562 114.
                                                          ... RESPONDENTS

(BY SRI B.PRAMOD, ADVOCATE FOR R-1 AND R-2;
    SRI SHAMANTH NAIK, HCGP FOR R-3 TO R-6;
    SRI BIPIN HEGDE, ADVOCATE FOR
    SRI KARTHIK V., ADVOCATE FOR R-7)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT
OR DIRECTION PROHIBITING THE R-1 AND 2 FROM GRANTING ANY
OUTLET IN GROUP -i CATEGORY TO THE R-7 AT ANNEXURE-H
DATED 28.06.2023, WHOSE LAND HAS NOT BEEN CONVERTED FOR
NON-AGRICULTURAL PURPOSES AS ON THE DATE OF LEASE OR
PRIOR TO LEASE IN RESPECT OF LONG TERM LEASE FOR A PERIOD
OF 19 YEARS 11 MONTHS AND ABOVE AND ETC.,


     THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED
FOR ORDERS ON 26.04.2025, COMING ON FOR PRONOUNCEMENT
THIS DAY, THE COURT MADE THE FOLLOWING:-



CORAM:      THE HON'BLE MR JUSTICE M.NAGAPRASANNA

                              CAV ORDER



        The petitioner is before this Court seeking a direction to

prohibit respondents 1 and 2 from granting any petroleum outlet

under    Group-I   Category      to       respondent   No.7   and    seeks   a

consequential direction of issuance of a writ in the nature of

mandamus       directing   the    respondents/authorities           to   cancel
                                     4



dealership allotment in favour of respondent No.7 and in turn

consider the petitioner for allotment of similar petroleum outlet.


        2. Heard Sri D.R. Ravishankar, learned senior counsel

appearing     for   the   petitioner,   Sri   B.Pramod,   learned   counsel

appearing for respondents 1 and 2, Sri Shamanth Naik, learned

High Court Government Pleader appearing for respondent Nos. 3 to

6 and Sri Bipin Hegde, learned counsel appearing for respondent

No.7.


        3. Facts, in brief, germane are as follows: -


        On 17-10-2023 the 1st           respondent/Hindustan Petroleum

Corporation ('the Corporation' for short) calls for applications from

desirous and eligible participants for the purpose of selection for

establishment of retail outlets of the Corporation. All the interested

persons were called for bidding on 08-12-2023. It appears that

respondent No.7 was declared as successful bidder for the location

that forms the subject matter of the present lis. Therefore, his

application dated 17-10-2023 comes to be accepted.
                                   5



      4. It is the averment in the petition that upon reviewing the

documents submitted by the 7th respondent it was found that the

land offered for the purpose of establishment of fuel station was an

agricultural land. At the time of submission of the application the 7th

respondent did not possess the land as mandated under the

guidelines for such allotment. The only land the 7th respondent had

was on a long term lease of 20 years on the said agricultural land in

terms of a lease deed dated 25-09-2023. On 24-01-2025, a

communication emerges from the respondent/Corporation that it

has   scrutinized   the    documents   or   reviewed   the   documents

submitted by the 7th respondent, which sufficiently demonstrated

that the land that was shown as the place for establishment of fuel

station met the eligibility criteria under Group-I category in terms of

the guidelines and all the allegations that the petitioner had made

were found to be incorrect.



      5. The petitioner again submitted representations to the

Tahsildar,   District     Registrar   and   Sub-Registrar    requesting

clarification on the registration of agricultural land for commercial

use, particularly regarding long term lease agreement for a period
                                        6



of 20 years. The representations remained unanswered. In the

interregnum, the petitioner on coming to know that the 7th

respondent would be allotted the outlet, files the present writ

petition on 07-02-2025. A coordinate Bench of this Court grants an

interim order not to make any allotment of the retail outlet

dealership to the 7th respondent until further orders. The 7th

respondent then prefers an application seeking vacation of the

interim order. During the pendency of the said application, the 7th

respondent       files   a    memo    that   on    07-03-2025    the   land   in

Sy.No.136/7 measuring 37 guntas which is submitted for usage of

fuel   station     has       been   converted     from   agriculture   to   non-

agricultural/commercial use for the purpose of putting up of a petrol

bunk only. The matter, with the consent of parties, is heard at that

stage.



       6. The learned senior counsel Sri D.R. Ravishankar appearing

for the petitioner would contend that the 7th respondent has

misrepresented about non-agricultural status of the subject land.

The petitioner should have been declared a successful bidder, as

the land mentioned by him, in his application is a legally converted
                                    7



land eligible to be used for commercial purpose. The petitioner's

land was converted long before the last date of filing of the

application in terms of the notification issued by the 1st respondent.

He would, therefore, contend that the guidelines mandate that

production of conversion order in the case of a long-term lease of

any land of 19 years 11 months as the case may be, is mandatory.

The learned senior counsel would take this Court through the RTC

extracts of land submitted by the 7th respondent and submit that

they show only 6½ guntas of land is converted. He would submit

that the petition be allowed and the prayer be granted by directing

the allotment in favour of the petitioner. He would seek to place

reliance upon several judgments rendered by this Court on the

issue    to   buttress   his   submission,   all   of   which   would   bear

consideration qua their relevance.



        7. Per contra, the learned counsel appearing for the 7th

respondent, the beneficiary of the allotment, would refute the

submissions to contend that the allotment of a petrol bunk does not

require furnishing of details of land to be made available at the time

of filing of the application. In the brochure, it is clearly indicated
                                 8



that a provisionally selected candidate will be required to offer the

land for evaluation and after the land is found to be, not that of the

allottee, either owning or leased, two months' time from the date of

issuance of the letter of intent is available to the selected candidate

to give an alternate land. He seeks to place reliance on Section 43

of the Transfer of Property Act to contend that the land that is

leased also would come within the 'land' that is necessary to be

given to the Corporation.


      8. The learned counsel for the Corporation would toe the lines

of the learned counsel for the 7th respondent in contending that the

clause permits action taken by the Corporation and, therefore, the

application of the 7th respondent has merited consideration at the

hands of the Corporation. The Counsels, in unison, would seek

dismissal of the petition.


      9. Sri Shamanth Naik, learned High Court Government

Pleader appearing for respondent Nos. 3 to 6 would submit that

they are formal parties and what is available in law is already

communicated to the petitioner against the application filed by him.

He would leave the decision to the Court.
                                    9



      10. I have given my anxious consideration to the submissions

made by the respective learned counsel and have perused the

material on record.


      11. The issue in the lis is with regard to selection of dealers

for establishment of regular and rural retail outlets. All the three

Corporations, IOC, BPCL and HPCL have notified a brochure for

selection of such dealers. Since the issue relates to selection of

dealers, I deem it appropriate to notice certain clauses of the

guidelines so notified for selection of dealers. They read as follows:-

      "INTRODUCTION

      The salient features of this selection guidelines are:

            (i)     All applicants meeting the eligibility
                    criteria will qualify for further selection
                    process.

            (ii)    Different selection process for Corporation
                    Owned Dealer Operated outlets, Dealer Owned
                    Dealer Operated outlets and Corporation Owned
                    Dealer Operated outlets under Corpus Fund
                    Scheme.

            (iii)   Multiple Dealership Norm (MDN)         has been
                    relaxed for "B"/" DC" site ROs.

            (iv)    Existing unviable SKO dealers of OMCs will be
                    eligible to apply.

            (v)     Corpus Fund Scheme of providing financial
                    assistance by OMCs can be availed by applicants
                                            10



                          applying for locations reserved for                 SC/ST
                          category, upon appointment as dealer.

                                           ....       ....        ....

        2. RESERVATION

        A. The Percentage of reservation for various categories in all the
           States except Arunachal Pradesh, Meghalaya, Nagaland and
           Mizoram are as under: -

                   Category                              SC/ST     OBC   Open    Total
Combined Category 1 (CC1)

Comprising of :-

(i) Defence Personnel &                                   2         2     4            8

(ii) Para Military Personnel/Central/State
     Govt. and Central/State PSU employees


Combined Category 2 (CC2)

Comprising of :-

(i) Outstanding Sports Persons (OSP) &                    0         0     1            1

(ii) Freedom Fighters (FF)

(iii) Primary Agricultural Credit Society (PACS)
Physically Handicapped (PH)                               1         1     1            3
SC/ST                                                    19.50                        19.50
OBC                                                                24                  24
Open                                                                     44.50        44.50
Total                                                    22.50     27    50.50        100


                                         ....        ....     ....


        4. ELIGIBILITY CRITERIA FOR INDIVIDUAL APPLICANTS -
           PROPRIETORSHIP / PARTNERSHIP
                                11



       Common Eligibility Criteria for all Categories applying as
individual (as on date of application unless mentioned
otherwise)

(i)     Citizenship: Indian Citizen.

(ii)    Residential status: Resident of India (as per income
        tax rules (If an individual stayed in India for 182 days or
        more in the previous Financial year, he is treated as
        resident of India as per Income Tax Rules irrespective of his
        citizenship. If the stay is less than 182 days he is a non-
        resident)).

(iii)   PAN: Must possess valid PAN card as on the date of
        application.

(iv)    Age: Not less than 21 years and not more than 60
        years except for Freedom Fighter under CC2 category.

        Proof of age should be supported by copy of 10th
        Standard Board Certificate / 10th Std. School Leaving
        Certificate/ Secondary School Leaving Certificate /
        Birth Certificate /Passport/Identity card issued by
        Election Commission/PAN card/Aadhar card. However,
        the document uploaded by the provisionally selected
        candidate in support of proof of age must contain
        date, month and year of birth and the certificate relied
        upon by the candidate for proof of age must be
        specially mentioned in the application.

(v)     Educational qualification:

        Passed Minimum 10th (examination conducted by a
        Board/School).

        Certificate issued by Armed Forces as equivalent to 10th
        Class pass in accordance with Ministry of Personnel,
        Public Grievances and Pensions (Dept. of Personnel and
        Training) notification No. 15012/8/82-Estt (D) dated
        12.02.1986 will also be considered.

        For educational qualification from overseas universities /
        boards, equivalent certificate issued by competent
                           12



       authority / State Government / Government of India
       should be submitted by the applicants.

       Minimum Educational qualification is not applicable to
       Freedom Fighters applying under CC2 category.

(vi)   Land (Applicable to all categories):

       The applicants would be classified into three groups
       as mentioned below based on the land offered or
       land not offered by them in the application form: -

       Group - 1: Applicants having suitable piece of land
       in the advertised location/area either by way of
       ownership/long term lease for a period of minimum
       19 years 11 months or as advertised by the OMC.

       Group - 2: Applicants having Firm Offer for a
       suitable piece of land for purchase or long-term
       lease for a period of minimum 19 years 11 months
       or as advertised by the OMC.

       Group-3: Applicants who have not offered land in
       the application. Only applicable for locations
       advertised under SC/ST category.

       Applications   under    Group   -   3    would   be
       processed/advised to offer land (Annexure - D)
       only in case no eligible applicant is found or no
       applicant get selected under Group - 1 & Group-2.

       In case land offered by all the applicants under
       Group -1 & Group-2 is found not suitable/not
       meeting requirements, then these applicant/s
       under Group - 1 & Group - 2 along with applicants
       under Group - 3 (who did not offer land along with
       application) would be advised by the OMCs to
       provide suitable land in the advertised location
       /stretch, within a period of 90 days from the date
       of issuance of intimation letter to them through
       SMS/e-mail. In case the applicant fails to provide
       suitable land within the prescribed period, or the
                            13



      land provided is found not meeting the laid down
      criteria, the application would be rejected.

      The other conditions with respect to offering of land
      are as under: -

      a)    The land should be available with the
            applicant as on the date of application and
            should have minimum lease of 19 years and
            11 months (as advertised by respective oil
            company) from the date or after the date of
            advertisement but not later than the date of
            application. If the offered land is on Long-
            term lease and there are multiple owners,
            then lease deed should be executed by all co-
            owners of the offered plot. Incase lease deed
            is not executed by all co-owners; such lease
            deed shall be treated as invalid.

                           ....     ....    ....

15.   FIELD VERIFICATION OF CREDENTIALS (FVC)

      Field Verification of Credentials (FVC) will be carried out
      for the provisionally selected candidate in respect of
      details given by the candidate in the application form. The
      objective of the FVC is to verify the correctness of the
      details given by the candidate in the application and the
      documents submitted thereafter. Failure to present these
      documents in original at the time of Field verification can
      result in cancellation of selection.

      Intimation regarding FVC will be given to the provisionally
      selected candidate 10 days in advance by SMS/e-mail. In
      case of any request for change of date/extension the next
      date will be given by mutual consent. However, the
      rescheduled date cannot be more than 10 days from the
      originally proposed FVC date.

      In case of no response/non-availability of the
      provisionally selected applicant on the revised scheduled
      date, the candidature shall be cancelled under intimation
                           14



     to the provisionally selected candidate through SMS/e-
     mail.

     The candidate would be required to produce all original
     documents at the time of FVC which were uploaded after
     provisional selection for verification.

     Original affidavits, copies of which were uploaded would
     be required to be submitted by the candidate to the FVC
     committee.


16. LETTER OF INTENT

     If the information given in the application by the applicant
     is found to be correct, and no selection related
     complaint/court case is pending for decision, Letter of
     Intent will be issued to the provisionally selected
     candidate.

     The dealer select, after receipt of LOI is required to make
     the offered land available in developed condition as per
     clause 12 (e) of affidavit (Appendix - XA) or as per
     clause 11 (e) of affidavit (Appendix - XB) and fulfill the
     other requisite conditions as mentioned in the LOI. The
     dealer select under Group - 1 category would be given 2
     months and 4 months would be given to Group - 2
     category for making land available along with all relevant
     land documents in respect of the land offered in the
     application for enabling OMCs to prepare layouts
     /applications for seeking the statutory approvals /
     licenses so that the Retail Outlet can be developed, failing
     which OMC can withdraw the LOI and proceed further
     with selection process.

     LOI will be issued after FVC but not before 30 days from
     declaration of results of draw of lots /bidding process/
     direct selection.

     Affidavit as per Appendix - XA or XB (as applicable) is to
     be taken again afresh from the applicant at the time of
     issuance of LOI.
                           15



    Withdrawal of LOI

    In case LOI holder is unable to provide the land/ develop
    facilities within the specified time or due to non-fulfilment
    of terms & conditions of LOI, then LOI can be withdrawn.
    A show cause notice would be given to the LOI holder and
    based on his reply decision to withdraw LOI can be taken
    by OMC. In such situations Initial Security Deposit would
    be forfeited.

    The Initial Security Deposit would also be forfeited if the
    LOI holder is unable to submit the total bidding
    amount/fixed fee within the stipulated time or the LOI
    holder surrenders his/her LOI for any reason or withdraws
    for any reason. In such case his/her selection would be
    treated as cancelled and LOI withdrawn.

                        ....     ....    ....

18. GRIEVANCE REDRESSAL SYSTEM

    Any complaint should be accompanied by a fee of
    Rs.5000/-, only in the form of demand draft of scheduled
    bank in favour of the Oil Company. Any complaint
    received without this fee will not be entertained. The
    complaint received against the selection including
    eligibility will be disposed of as under: -

    (i)   Complaints received before or after draw of
          lots/bidding process along with requisite fee of
          Rs.5000/-, will be kept in record and investigation
          carried out after successful completion of scrutiny,
          land evaluation and Field Verification of Credential
          for the selected candidate only in following cases:-

          •      General complaints with verifiable facts
          •      Complaints against selected candidate*

    * Selected candidate means the candidate who has
    completed Field Verification of Credentials successfully
    and is eligible for issuance of LOI."
                                     (Emphasis supplied)
                                 16



The afore-quoted clauses of the guidelines are the ones that are

germane. The allotment is divided into three categories. Group-1

would be those who are having suitable piece of land in the

advertised location by way of ownership or long-term lease of 19

years 11 months; Group-2 would be the applicants who are having

firm offer for a suitable piece of land for purchase or long-term

lease; and Group-3 would be those applicants who have not offered

land in the application. This is applicable only to locations

advertised under SC & ST category. The clause further elaborates

that, in case of a lands offered by the applicant under Groups-1 and

2 are not found suitable, then the applicants under those groups

would be advised to provide suitable land in the advertised location

within 90 days from the date of issuance of intimation letters to

them with regard to the allotment.



      12. What would unmistakably emerge from the afore-quoted

clauses is that a person who is applying should have a land of his

own or should have a long-term lease of property of minimum 19

years 11 months or should be a proper/concrete offer for such

lease. It also provides 90 days' time for issuance of letter of intent
                                      17



to alter the land in case the land provided not being in terms of the

guidelines. The letter of intent is dealt with under clause 16. The

letter of intent further makes it clear that a dealer selected under

Group-1 category would be given two months and Group-2 would

be given four months for making the land available along with all

relevant documents. The submission of the learned counsel for the

7th respondent is basing his claim only on clause 16 which deals

with letter of intent. The issue now would be, whether the land that

the 7th respondent has offered for establishment of a fuel outlet is a

converted land or otherwise, as it is trite that dealership of a fuel

outlet, cannot be an agricultural activity.



       13. The allegation of the petitioner is that the land that

belonged to the        7th respondent or         offered at the        time of

advertisement is not a converted land. This appears to be correct

for   the   reason    that   the   conversion     order    comes     about       on

07-03-2025. The order of conversion reads as follows:

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                                      18



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Oಾವ\ ೇ ಕಟBಡವನು7 ಕಟB`ಾರದು.
                                    19



7. ಈ ಭೂ ಪ8ವತ      ಾ ಜ1ೕ ನ?@ /ಾoqಸNಾಗುವ       ೈ!ಾ8 ಾ ಘಟಕಗಳ     ೊ!ೆ ಅ ಲ ಇತ(ೆ
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YಾಡNಾಗುವ\ದು.
                                    ೆಚು|ವ8 ಷರತುಗಳ

1. ಈ ಭೂ ಪ8ವತ      ೆ ಆ ೇಶವ\ ಮುಂWನ ಆ ೇಶದವ(ೆಗೂ }ಾಶ0ತ_ಾJ YಾನE_ಾJರುತ ೆ, ಭೂ
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2. ಷರತು (೨) ರ?@ $; ರುವಂ&ೆ ಭೂ ಪ8ವ$ ತ ಜ1ೕನನು7 commercial - Petrol bunk
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97 ರ ಪ* ಾರ ಮರು ಅನುಮ$ಯನು7 ಪ[ೆಯತಕ9ದು%. ಸದ8 ಭೂ ಪ8ವ$ ತ ಜ1ೕನನು7 Oಾವ
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ಮಂಜೂ(ಾ$ಯನು7 ಪ[ೆಯತಕ9ದು%.

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4. ನಗರ Pೕಜ ಾ Sಾ*     ಾರ/!ಾ*ಮ ಪಂZಾT$/ಅUವೃW• Sಾ*      ಾರ/ಸRಮ Sಾ*    ಾರವ\ Nೇ ಔe
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Sಾ*   ಾರ ಅಥ_ಾ !ಾ*ಮ ಪಂZಾT$ ಅಥ_ಾ ಸಂಬಂ          ದ ಸRಮ Sಾ*    ಾರವ\ Nೇ ಔe Sಾ@3 !ೆ
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                                            20



           1ೕಸ?8 ದ D ೕಣ ವನು7 2ಟುB ಉ;ದ Dಭ'ತ bೇತ*ವನು7 ಆOಾ bೇತ* ೆ9                 ೕ#ರುವ ಅ ಯ
           ಗುರು$ನ ಸಂgೆE ( Property id) zೕ(ೆ!ೆ Yಾ(ಾಟ Yಾಡಬಹು ಾJರುತ ೆ.

                                                ƒೆಡೂE„ Dವರ

                   ೋNಾರ 'Nೆ@ Yಾಲೂರು &ಾಲೂ@ಕು, ಲಕೂ9ರು ೋಬ;, <ಕ9 ಇಗ>ಲೂರು !ಾ*ಮದ 136/*/7,
           ಸ.ನಂ. ರ?@ನ ಒಟುB ಎಕ(ೆ 0.37.0.00 ಗುಂCೆ D ೕಣ ೆ9 ಭೂಪ8ವ$ ತ ಜ1ೕ !ೆ ಚಕು9ಬಂW:

                                                          ZÀPÀÄ̧A¢
 ¸À.£ÀA.        «¹ÛÃtð
                               ¥ÀƪÀðPÉÌ          ¥À²ÑªÀÄPÉÌ          GvÀÛgÀPÉÌ          zÀQëtPÉÌ
136*7         0.37.0.00    Masthi Malur      N.Krishnappa        Sy.No.136/4          Savitha
                           Road                                                     Ravishankar


                                                                                   ¸À»/-
DC Name:                                                                          f¯Áè¢üPÁj
Dr.M.R.Ravi                                                                        ೋNಾರ 'Nೆ@"



The conversion order is on 07-03-2025. The conversion application

is filed on 29-01-2025. The conversion is for a specific purpose - for

establishment of a petrol bunk.



           14. The issue would be, whether an agricultural land could

have been projected to be the land for establishment of a

petroleum outlet or a fuel station at the time of submission of the

application. The issue need not detain this Court for long or delve

deep into the matter, as the Division Bench of this Court in the case
                                     21



of VINOD N v. M/S INDIAN OIL CORPORATION LIMITED1, on

identical circumstance, has held as follows:

                                    "....    ....     ....

               3. The appellant was declared as a successful candidate in
        the draw held for selection and on 23.06.2019 a letter was
        issued directing the appellant to remit a sum of Rs.50,000/- and
        to complete the formalities. Vide communication dated
        21.10.2019, he was informed that the land offered by him does
        not fall under Group - 1 as per Market Discipline Guidelines and
        he has been shifted to Group - 3.

               4. A petition was preferred before this Court stating that a
        lease deed was very much submitted and the M/s. Indian Oil
        Corporation could not have treated it as mortgage deed and no
        loan was advanced to the appellant. The learned Single Judge
        while deciding the matter has observed that the deed is a
        transfer deed and not a mortgage deed. This Court has carefully
        gone through the aforesaid document and the document does
        not reveal at all that any loan was advanced at any point of time
        to the appellant. Otherwise also, as per the Market Discipline
        Guidelines, in case a land offered by an applicant under Group -
        1 is not found suitable, three months' time has to be given to
        him to provide suitable alternative land in the advertised
        location/stretch.

               5. At this juncture, learned counsel Sri. Dhananjay V
        Joshi who is the counsel in the connected matter, has argued
        before this Court that the notice to provide alternative land is
        only given in case there is no person available under Groups - 1
        and 2 has offered a suitable land.

               6. The relevant extract of the brochure relating to
        selection of dealers for regular and rural retail outlets under the
        heading "land" is reproduced as under:

                     "The applicants would be classified into three
              groups as mentioned below based on the land offered or
              land not offered by them in the application form:-

1
    W.A.No.216 of 2020 disposed on 20-07-2021
                               22




             Group 1 : Applicants having suitable piece of land
      in the advertised location / area either by way of
      ownership / long term lease for a period of minimum 19
      years 11 months or as advertised by the OMC.

             Group 2 : Applicants having Firm Offer for a
      suitable piece of land for purchase or long term lease for a
      period of minimum 19 years 11 months or as advertised
      by the OMC.

             Group 3 : Applicants who have not offered land in
      the application.

      Applications under Group 3 would be processed /advised
      to offer land only in case no eligible applicant is found or
      no applicant get selected under Group 1 & 2.

      In case land offered by all the applicants under Group 1 &
      Group 2 is found not suitable / no meeting requirements,
      then these applicant/s under Group 1 & Group 2 along
      with applicants under Group 3 (who did not offer land
      along with application) would be advised by the OMCs to
      provide suitable land in the advertised location / stretch,
      within a period of 3 months from the date of issuance of
      intimation letter to them through SMS/e-mail. In case the
      applicant fails to provide suitable land within the
      prescribed period or the land provided is found not
      meeting the laid down criteria, the application would be
      rejected."

       7. The learned counsel for M/s. Indian Oil Corporation has
not been able to point out whether there are other persons
available who have offered suitable land under Groups - 1 and
2.

       8. Resultantly, in case there is no other person
available in Group - 1 or Group - 2 who has been found
suitable keeping in view the land requirements, M/s.
Indian Oil Corporation shall give three months' notice to
all the applicants for offering a suitable land and in case
the land offered by some other applicants under Groups -
1 and 2 is held to be suitable, then the requirement of
three months' notice to the present appellant does not
arise.
                                  23



            9. So far as the lease / mortgage deed is concerned,
      undisputedly, the land in question is an agricultural land
      and as per the provisions of Karnataka Land Reforms Act,
      1961, keeping in view Section 5, no tenancy can be
      created by way of lease in respect of agricultural land.
      Hence, the so called lease / mortgage deed as it is
      contrary to the statutory provisions cannot be looked into
      for the purpose of "land" under the selection criteria.
      Otherwise also, the title of the deed is "mortgage deed"
      as reflected from the document which is on record as per
      Annexure-F."


                                                  (Emphasis supplied)



The case before the Division Bench was also of a successful bidder

or successful candidate offering an agricultural land for the purpose

of establishment of a fuel station. This was initially challenged

before the learned single Judge in Writ Petition No.1213 of 2020.

On 21-01-2020 the writ petition had been dismissed by the

following order:


             "Petitioner's grievance is by communication dated 21st
      October 2019, the Indian Oil Corporation(IOC) has conveyed
      that the land document submitted by the petitioner does not fall
      under Group-1 and hence, petitioner's application would be
      considered under Group-3.

             2. Shri. Mallikarjun C. Basareddy, learned Advocate for
      petitioner submitted that the communication is bad in law
      because, petitioner has furnished lease agreement dated 14th
      December 2018 as per Annexure-F.
                                    24



               3. Shri. Vighneshwar S. Shastri, learned Advocate for
        Corporation submitted that though petitioner claims to have
        submitted 'Lease Agreement', the document submitted by him is
        in fact a 'Mortgage Deed'. Therefore, petitioner's case cannot be
        considered under Group-1.

              4. Perusal of Annexure-F shows that it is a mortgage
        deed. Hence, no exception can be taken to the decision taken by
        IOC to consider petitioner's case in Group-3 category.

              5. Resultantly, this petition fails and it is accordingly,
        dismissed."


The learned single Judge had observed that no exception can be

taken to the decision taken by the IOC therein to consider the case

of the petitioner in Group-3, as he was not eligible under Group-1.

This is affirmed by the Division Bench.



        15. A little later to the aforesaid order, a learned single Judge

of this Court in the case of N.MANJUNATH REDDY v. THE HEAD

OF DIVISIONAL OFFICE AND ANOTHER2, has held as follows:

                                    "....   ....     ....

               3. Learned advocate for the petitioner submitted that
        petitioner has submitted a valid Lease Agreement dated
        14.12.2018. However, the Indian Oil Corporation has sent the
        instant communication without proper application of mind.

               4. Learned advocate for respondent No.1-Corporation has
        filed a memo along with a copy of Record of Right (pahani) in

2
    Writ PetitionNo.1091 of 2020 disposed of on 22-01-2020
                                  25



     respect of Sy.No.9/1, Royalmandinne Village, Tayaluru Hobli,
     Mulubagalu Taluk, Kolar District, and also a copy of Lease
     Agreement in respect of property bearing No.9/1 of the same
     village. He submitted that initially petitioner had offered an
     agricultural land and submitted a Record of Right in respect
     Sy.No.9/1. Subsequently, Lease Agreement in respect of
     property No.9/1 has been submitted. Therefore, Indian Oil
     Corporation has rightly conveyed that the land in question
     cannot be considered under Group 1.

           5. In reply, learned advocate for the petitioner submitted
     that as per Clause ix contained in the brochure (Annexure-C),
     the Indian Oil Corporation is required to give 21 days time to
     the petitioner, which is not complied with.

           6. Admitted position is that petitioner initially
     offered Sy.No.9/1 as per Record of Right. Lease
     Agreement dated 14.12.2018 produced by both petitioner
     and respondent is in respect of property bearing No.9/1.
     Learned advocate for the petitioner also submitted that
     the District Registrar of Stamps has conveyed that both
     properties are same. The District Registrar is not the
     competent Authority to decide whether two properties
     are same. In the instant case, Lease Agreement is in
     respect of property bearing No.9/1 and the Record of
     Right is in respect of Sy.No.9/1. Petitioner has given two
     different documents, the first one as agriculture property
     and second one with 'property number' without
     conversion of land for non-agriculture purpose.

           7. In the circumstances, no exception can be taken to the
     communication dated 08.01.2020 issued by the Indian Oil
     Corporation. Resultantly, this petition fails and it is accordingly
     dismissed."
                                                   (Emphasis supplied)


In the light of the issue being answered by the Division Bench as

observed, this Court need not delve deep into the issue.               The

admitted facts in the case at hand are that, as on the date when
                                      26



the   application   of   the   7th    respondent   was   taken   up   for

consideration, the land that he had offered was still an agricultural

land, which was yet to get converted for non-agricultural purposes,

even an application for conversion had not been preferred by the 7th

respondent. It is preferred only on 29-01-2025, long after his

selection and it is converted during the pendency of the subject

petition, that too only for petrol bunk purpose.


      16. It is trite law that an application should meet all the

necessities of the brochure or the advertisement on the last date

depicted for the purpose of submission of application. As observed

hereinabove, the admitted fact is that the 7th respondent did not

have a valid land to be projected for the purpose of establishment

of a fuel station. It is ununderstandable as to how respondent No.7

has been selected by the Corporation. The selection, therefore,

suffers from the vice of non-application of mind and runs counter to

the judgment rendered by the Division Bench. In that light, the

petition deserves to succeed, albeit in part, as there can be no

direction by grant of an allotment in favour of the petitioner, while
                                   27



observing that the allotment in favour of 7th respondent was

erroneous and contrary to law.



     17. For the aforesaid reasons, the following:



                               ORDER

(i) Writ Petition is allowed in part.

(ii) The allotment made in favour of the 7th respondent stands quashed.

(iii) The matter is remitted back to the hands of the 1st respondent/Corporation to consider the next eligible candidate for the purpose of establishment of petrol pump, if the said candidate would meet all the necessities under the guidelines, bearing in mind the observations made in the course of the order.

Ordered accordingly.

Consequently, I.A.No.1 of 2025 stands disposed.

SD/-

(M.NAGAPRASANNA) JUDGE

bkp CT:MJ

 
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